On this page we will provide, and expand on, the method for calculating FCAS Revenues.
(A) Method for calculating FCAS Revenues
In the ENERGY market, the method for calculating revenues (or costs) has varied over time:
Until 30th Sept 2021, revenue was calculated on a 30-minute basis based on MWh volume ‘sent out’ to the grid and effectively delivered to the Regional Reference Node (or consumed) over the full 30-minute trading period.
From the commencement of Five Minute Settlement (1st October 2021), ENERGY revenues (and costs) have been calculated based on MWh volume ‘sent out’ to the grid (or consumed) for the new 5-minute trading periods.
However in the FCAS market, revenues* have always been calculated on a 5-minute basis:
1) They are calculated based on the enablement volume multiplied by the particular commodity price; and
2) It is calculated individually for each revenue; and
3) Unlike in ENERGY (where the MLF applies) the MLF does not apply in the calculation of FCAS enablement.
4) Remember that those DUIDs enabled for provision of any of the 8 x FCAS commodities are paid for their enablement
(a) i.e. to keep themselves available to supply the required amount – whether or not the service is actually used in that 5-minute period
(b) in that way, it’s a payment for capacity (in MW over a period), not energy (MWh supplied through a period).
Note (*) that costs are calculated differently, as discussed below.
(B) Reporting on FCAS Revenues